Applicant
Aquila AgrarINVEST Investitions GmbH, D/S Neuseeland Milchfarm Investitions GmbH and Alceda Star S.A.
Case number(s)
201020006
Decision date
Type
Decision
DecisionConsent Granted
Section 12(b) Overseas Investment Act 2005
Decision date17 December 2010
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in up to 100.0% of the units of Mead Farm Limited Partnership which owns or controls a freehold interest in 531.4669 hectares of land at Rakaia Terrace Road, Rakaia, Mid Canterbury.
Consideration$17,336,250
ApplicantAquila AgrarINVEST Investitions GmbH, D/S Neuseeland Milchfarm Investitions GmbH and Alceda Star S.A.
Germany (100%)
VendorSynlait Farms Limited
Synlait Limited, New Zealand (100.0%)
Background

Mead Farm is currently used as a dairy farm. The Applicant proposes to increase production by improving irrigation and the converting 66 hectares currently utilised as a run-off into part of the milking platform.

The Applicant states that it is interested in a genuine return on its investments by adding value through additional capital expenditure, sound farming practices and good management.

The overseas investment transaction has satisfied the criteria in section 16 of the Overseas Investment Act 2005. The 'substantial and identifiable benefit to New Zealand' criteria were satisfied by particular reference to the following factors:

Overseas Investment Act 2005
17(2)(a)(i) – Creation/Retention of jobs
17(2)(a)(iii) – Increased export receipts
17(2)(a)(iv) – Added market competition/productivity
17(2)(a)(v) – Additional investment for development purposes
17(2)(a)(vi) – Increased processing of primary products
17(2)(e) – Walking Access
17(2)(f) – Offer to sell riverbed to the Crown

More informationCharlie Brown
Rhodes & Co.
PO Box 13444
CHRISTCHURCH